Mineral Extraction for Socio-Economic Transformation of Tanzania: The Need to Move from Papers to Implementation of Mining Policy and Law

Abstract

Tanzania is endowed with vast quantities and types of resources whose extraction has been central to the country’s economic growth. However, the challenge has been translating growth in extraction activities into inclusive and sustainable socio-economic development and transformation. Instead of being of benefit to all, mineral resource extraction has only served to put Tanzania into the map of foreign capital flows but with limited benefits to the local citizens. Drawing on academic literature, government policy and legal documents as well as other secondary materials, this paper examines challenges of translating resource extraction into inclusive and sustainable socioeconomic development in Tanzania. It focuses on large scale gold mining and local content provisions. The paper argues that having in place a good policy and legal framework is nothing if it is not implemented to the benefit of local communities and the entire nation. There is, therefore, a need to move from papers to implementation if mineral resource extraction is to be of any significance to socioeconomic transformation. This is very significant especially now that Tanzania has a new mining sector legal and policy framework in place and is looking forward to making the most out of its recently discovered natural gas.